(MENAFN - ProactiveInvestors - Australia) Cashed up Dart Mining (ASX: DTM) is preparing to test the Mt Unicorn ore body continuation at depth, with a rig onsite to commence drilling.
The company has around 3.3 million in cash following a recent 1.25 million raising - which demonstrates the confidence shareholders have in the company's projects.
Dart has engaged edrill Australia to commence a program of deep and metallurgical drilling, which is designed to the existence of multiple high grade stacked molybdenum horizons at depth.
Highlighting the potential of the deposit, previous drilling has already intersected potentially four of these, of which three are currently included in the Unicorn JORC Resource.
Unicorn already has similarities to Henderson, a world class primary molybdenum mine in Colorado, U.S., with the drilling to provide an increased understanding of the projects geology to be developed.
Importantly - the drilling will also give an indication of Unicorns potential to become an underground mine below the currently defined open cut resource, should Unicorn go into production at some stage in the future.
Lindsay Ward, managing director, commented: "Dart Mining is very pleased that drilling is about to recommence at Mt Unicorn and that the continuation of the ore body below 574 metres will be tested for the first time.
"It is planned that an existing hole (DUNDD008) will be extended from its current depth of 387.9 metres to approximately 1200 metres depending on drilling conditions."
Advancing the Pre-Feasibility study
Metallurgical drilling is an important step in advancing the prefeasibility study for Unicorn and will enable the project to be further de-risked, with project economics confirmed and mining and mill design studies further advanced.
Ward added, "A large diameter metallurgical drilling program will be implemented immediately after the first deep hole is completed so as to enable time for assay results to be returned from the deep drill hole before any further deep drilling is considered."
Unicorn's pathway to progress
Dart has a clear focus and pathway to progress Unicorn to production having recently completed a Scoping Study, which indicated the potential for the project to become a viable, long mine life operation.
Unicorn's low forecast operating cash cost is a significant advantage with the project being cash flow positive at a US8 per pound, molybdenum price, (net of credits).
The low cash cost of US3.58/lb (net of credits) places the project in the lowest cost quartile.
Another plus is that demand for molybdenum is forecast to remain strong and continue to grow at between 4% and 6% per year with prices to recover to US18.50 per pound by 2016 when Unicorn is planned to move into full production.
The project is also high grade from surface, and will benefit from a very low strip ratio and available infrastructure, with positive metallurgy including recoveries of 92% molybdenum, 96% copper and 83% silver.